The U.S. Treasury building in Washington. (Photo: Shutterstock)

The Treasury Department on Tuesday released guidance on how lenders can process independent contractors and gig economy workers for Paycheck Protection Program (PPP) — providing a much-needed path to loans for these groups.

Sen. Marco Rubio, R-Fla., tweeted that the just-released 19-page guidance “answers virtually ALL of the big remaining questions we had from lenders.”

As of close of business on Monday, 4,662 lenders have approved $242 billion in PPP loans for more than 1 million businesses, Rubio tweeted.

Leon LaBrecque, chief growth officer at Sequoia Financial Group in Troy, Michigan, said the guidance “is helpful on the issue of Schedule C filers. Now sole proprietors, independent contractors and gig workers can clearly have a path getting a much-needed PPP.”

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The guidance, he added is “overdue, but [provides] much clearer direction.”

The PPP, established by the Coronavirus Aid, Relief and Economic Security (CARES) Act, is implemented by the Small Business Administration with support from Treasury.

— Check out FINRA Clarifies Disclosure Rules for PPP Loans on ThinkAdvisor.